SCG announces the Operating Results for FY2015, showing earnings growths of 35% y-o-y, thanks to the performance of the chemicals business. With brighter prospects for the ASEAN economies, SCG continues to earmark strategic investments and well placed research and development efforts in anticipation of future demand growths within the region. SCG is well positioned towards its vision to become a leader in sustainable innovations.

Mr. Roongrote Rangsiyopash, President and CEO of SCG, disclosed the company's unaudited Operating Results for 2015, showing Revenue from Sales of 439,614 MB, a decrease of 10% y-o-y. However, Profit for the Period reached 45,400 MB, representing an increase of 35% y-o-y, attributed to the healthy earning in the chemicals business, despite the lower performance from the cement and building materials business. In addition, export Revenue, which accounted for 29% of SCG's total Revenue from Sales, decreased 11% y-o-y to 126,996 MB.

On a quarterly basis, SCG's Q4/2015 Revenue from Sales decreased 10% y-o-y and 5% q-o-q to 105,622 MB as a result of lower chemicals prices which are oil price linked. However, Profit for the Period registered an increase of 29% y-o-y at 11,449 MB, thanks to better chemicals earnings, while also showing a growth of 27% q-o-q, since the previous quarter (Q3/15) was held back by a total of 3,630 MB non-recurring items ranging from inventory adjustments and the FX loss.

The performances of SCG's businesses in ASEAN outside of Thailand in 2015

The combined FY2015 Revenue from Sales of SCG's ASEAN production facilities and Thai exports to ASEAN countries amounted to 100,150 MB, represents 23% of SCG's total Revenue from Sales, flat y-o-y. Revenue from Sales from SCG's production bases in ASEAN is at 47,172 MB, accounted for 11% of the total Revenue from Sales, and a 6% increase y-o-y. Meanwhile, Revenue from Sales of exports to ASEAN countries is at 52,978 MB, accounting to 12% of the total Revenue from Sales, a 6% decrease y-o-y, due to the falling prices of chemicals products. As of 31 December 2015, SCG's total assets in ASEAN excluding Thailand stands at 108,183 MB or 21% of the company's total assets.

SCG's total assets as of 31 December 2015 stands at 509,981 MB.

The 2015 operating results by business units are as follows:

  • SCG Cement - Building Materials recorded FY2015 Revenue from Sales of 178,988 MB, a decrease of 3% y-o-y, due to the stagnant domestic market recovery in Thailand. Profit for the period dropped to 10,250 MB, a 22% decrease from last year, owing to lower EBITDA and increased depreciation.
  • SCG Chemicals recorded FY2015 Revenue from Sales of 200,433 MB, a decrease of 19% y-o-y, due to lower chemicals product prices which are oil price linked. Profit for the period reached 28,488 MB, representing a growth of 129% y-o-y as a result of healthy chemicals spreads.
  • SCG Packaging registered FY2015 Revenue from Sales of 70,907 MB, a growth of 10% y-o-y, owing to the higher export sales volume in both the Packaging chain and Fibrous chain. Profit for the period was 3,463 MB, a slight increase of 0.4%
    y-o-y, thanks to the non-recurring divestment gain of Thai British Security Printing Public Company Limited (TBSP) shares and better EBITDA generation.

Mr. Roongrote added 'As for the progress of SCG's investments in ASEAN, we are continuing as planned and are able to accommodate and meet the market demand dynamics. The cement plant in Indonesia commenced commercial operation in November 2015, while the cement plants in Myanmar and Laos are expected to begin operation in the middle of 2016 and 2017, respectively. These investments are integral to the ability to support our market expansions and serve our ASEAN customers' demands. SCG is confident in the region's growth prospects and anticipates that in 2016, the ASEAN Economic Community will propel our businesses especially in CLMV countries (Cambodia, Laos, Myanmar and Vietnam) which are the key export markets.'

For Thailand, despite the sluggish economic growth due in part to the global economic trends, 2016 expects to see positive economic trends, thanks to the government's stimulus policies and projects which are expected to help boost spending and continue to drive investments in the country. Cooperation from all sectors is required to help propel developments.

SCG places great importance on the development of High Value Added (HVA) products and services to facilitate the varied demands of today's customers and to elevate the quality of living. In 2015, SCG invested more than 3,500 MB towards research and development (R&D). This amount represents a 30% increase from the previous year and accounts for 0.8% of the FY2015 Revenue from Sales. In 2016, SCG will increase the R&D budget to be more than 1% of the year's total Revenue from Sales. In 2015, Revenue from Sales of HVA products and services was at 161,851 MB, a 4% decrease y-o-y and accounted for 37% of the Revenue from Sales.

SCG announces the following resolutions of the Board of Directors' Meeting to submit for approval at the Annual General Meeting of Shareholders, a full year 2015 dividend payment of 16.00 Baht per share for a total amount of 19,200 million Baht, or 42% of profit for the year on consolidated financial statements, of which 7.50 Baht per share totaling 9,000 million Baht was paid as an interim dividend on August 27, 2015. The final payment of dividend will be 8.50 Baht per share totaling 10,200 million Baht.

The above dividend distribution shall be paid to the shareholders entitled to receive the dividend according to the Company's Articles of Association and who are listed in the record date on Thursday, April 7, 2016 and whose names are collected on Friday, April 8, 2016 for the right to receive the dividend. (The XD, or the date on which a purchaser will not be entitled to receive the dividend, will be on Monday, April 4, 2016.) The dividend will be paid on Thursday, April 28, 2016. The receipt of such dividend shall be made within 10 years.

The Siam Cement pcl issued this content on 27 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 27 January 2016 08:04:21 UTC

Original Document: http://www.scg.co.th/en/08news_release/01_news/detail.php?ContentId=2830